No pivoting; just an incremental realization of a better Web. We never replaced ads. Brave blocks trackers, and their associated third-party ads for privacy and security reasons—we've done this from the start. But when you block third-party ads, you cut into the revenue of publishers, creators, and other content makers.
Cutting revenue for those who make the Web wonderful is not ideal, so an alternative approach was needed to help those who creator the content that keeps us 'coming back' to the Web. This is where Brave Rewards came in, and Brave's User Growth Pool. We distributed BAT to our users, inviting them to ear-mark it for the creators they appreciated most. Some of those creators signed-up to claim our tokens, while others didn't.
From the start, Brave has been focused on privacy, security, and sustainability. In the vein of privacy, we introduced Brave Search. An engine with its own index, not connected to you or your online activities, existing only to help you find what you're seeking on the Web.
Our revenue model is largely ad-based, but quite different from the ads we all have come accustomed to on the Web. Brave's Ad model is consent-based, user-configurable (you control ad-frequencies, etc.), and private-by-design. Rather than sending your data off to third-parties, we send regional ad catalogs to you. These are studied in the private enclave of your machine so that your data is never transmitted elsewhere. When users participate in Brave Ads, they receive 70% of the associated revenue (for their attention). Brave gets the remaining 30%.
I hope this helps